Analysis of Urban Land Shortages: The Case of Korean Cities

Son, Jae-Young; Kim, Kyung-Hwan

doi:10.1006/juec.1997.2051

Cited by 37 publications

(20 citation statements)

References 9 publications

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“…While planners view the reduction in travel times and distances as a benefit, they may not consider that congestion and the opportunity cost of land within urban areas would also increase. This has been the case in Portland, Oregon (Knaap, 1985) and in South Korea cities (Son and Kim, 1998).…”

Section: Put It As Followsmentioning

confidence: 91%

Curbing excess sprawl with congestion tolls and urban boundaries

Anas

Rhee

2006

Regional Science and Urban Economics

155

120

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In modern urban areas jobs and residences are connected by commuting and by discretionary travel and consumers sort in land and labor markets according to idiosyncratic attachment, rents, wages and access to products. Our numerical simulations of a spatial general equilibrium model show that unpriced traffic congestion creates excess sprawl causing daily personal travel to be 8 min or 13% longer than optimal. We juxtapose congestion tolls, favored by economists, and urban boundaries, favored by planners, as two alternative policies for eliminating this excess. As explained in Anas and Rhee [Anas, A. and Rhee, H.-J. 2005, When are urban growth boundaries not second-best policies to congestion tolls?, in press in the Journal of Urban Economics], in our dispersed city, a boundary of any stringency is absolutely harmful and is not a second-best policy to congestion tolls. To curb the excess, the planner's boundary must be very stringent causing large distortions in land, labor and product markets while leaving the congestion unpriced. Such a boundary's deadweight loss is 15% of money income and 70 times higher than the benefits of firstbest congestion tolls that curb the sprawl by pricing travel efficiently. This result is robust in sensitivity analyses. Boundaries are efficient when compactness is valued, but tolls are still needed to reduce congestion.

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Section: Put It As Followsmentioning

confidence: 91%

Curbing excess sprawl with congestion tolls and urban boundaries

Anas

Rhee

2006

Regional Science and Urban Economics

155

120

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“…Son and Kim found that greenbelts, rather than natural restrictions such as mountains, are the main cause of shortages of urban land in Korea. They proposed removing greenbelts to meet the growing demand for urban land and to stabilize land prices in Seoul [42]. Although Bae and Jun did not specifically investigate the land price effects of greenbelts in Seoul, they did indicate that these greenbelts have increased the density of the local population, caused traffic congestion and increased housing prices in the city center [43].…”

Section: Literature Reviewmentioning

confidence: 99%

The Effects of Greenbelt Policies on Land Development: Evidence from the Deregulation of the Greenbelt in the Seoul Metropolitan Area

et al. 2017

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Greenbelt policies are important urban containment policies. On the one hand, they can effectively control the disorderly growth of a city; on the other hand, they can cause other social problems because of their strict control over land development. This paper uses data from 2000 and 2010 and the difference-in-differences (DID) method to evaluate the effects of greenbelt deregulation policies on urban land development in the Seoul metropolitan area (SMA) through a quasi-natural experiment. The results show that first, the deregulation of the greenbelt has significantly furthered urban land development that was not caused by economic development or other factors. Second, the greenbelt deregulation had no significant effects on urban land development in the city centers, but has furthered urban land development near the boundary of Seoul City and greenbelt boundaries. Third, in terms of the effects on land development, the greenbelt deregulation has resulted in regional heterogeneity. Specifically, the greenbelt deregulation has had a significant impact on the urban land development in the southern section of the Han River, whereas the effects of the greenbelt deregulation in the northern area of the Han River are not as obvious.

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“…In an empirical analysis they estimated that in constant prices housing prises rose by 3,5 fold, whereas land price increase was 11 fold since 1955 in Britain. Son (1998) found out that in Koean cities government regulations have been more a important reason in the emergence of shortages in land supply, compared to limitations due to natural factors.…”

Section: The Relationship Between Land and Housing Suppliesmentioning

confidence: 99%